Land Purchase Rules, Farmers' Benefits and Village Development Fund: Land reform discussed in Odesa

16 January 2020, 09:03
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First Deputy Head of the Odesa Regional State Administration Vyacheslav Ovechkin participated in the discussion of the land reform bill. The meeting was chaired by Deputy Minister for Economic Development, Trade and Agriculture of Ukraine Taras Vysotskyi.

The participants discussed the details of the land reform bill, which was prepared for the second reading. According to the document, land is allowed to be purchased by individuals, citizens of Ukraine, territorial communities, and the state. Legal entities will be able to own plots if their founders are only citizens of Ukraine, the state or local self-government bodies. The area of agricultural land owned by one legal entity may not exceed 10 thousand hectares. Buying and selling transactions are carried out exclusively in non-cash form and when verifying the origin of funds.

“Banks will not buy land, that is, they will not be able to become owners through a contract of sale. The only condition for them is the acquisition of plots through the collection of a loan, if there is a proper court decision. But in this case, they will also have to alienate these lands at auction for two years, ”said Taras Vysotskyi, Deputy Minister of Economic Development, Trade and Agriculture of Ukraine.

According to the bill, farmers will be able to purchase state-owned land on preferential terms. Namely on the rights of permanent use for the peasant economy, the life-long inherited possession and the right of lease, acquired through the re-registration of the right of permanent use. Persons with these documents will be able to buy the land without auction, at the price of a regulatory monetary valuation and in installments for seven years.

The bill also provides for the establishment of a Rural Development Fund. It will be formed including at the expense of interest from the sale of state and communal property. And spending will be on infrastructure, energy conservation, education, medicine and development programs for small and medium-sized agricultural producers.

“Creating a Rural Development Fund is extremely important. This is another opportunity to develop the infrastructure of our area. And most importantly, it is additional money for our united territorial communities, ”- said Deputy Head of Odesa Regional State Administration Vyacheslav Ovechkin.

It should be noted that the Verkhovna Rada may consider the bill No. 2178-10 next month. The first reading of the document was approved on November 13.